Oil Exceeds $ 70 a Barrel Ahead of The OPEC+ Meeting

Oil prices rose on Tuesday, June 1 ahead of a meeting of the OPEC+ alliance, buoyed by hopes of growth in fuel demand in the coming months as the summer driving season begins in the United States, the world’s largest oil consumer.

Prices also received a boost from Chinese data showing factory activity increased at the fastest pace this year in May.

Brent crude for August delivery rose 83 cents, or 1.2%, to $ 70.15 a barrel, US West Texas Intermediate crude contracts rose $1.29, or about 2%, to $67.61 a barrel.

An OPEC source said that the organization and its allies, a grouping known as OPEC+, will likely stick to the current pace of gradually reducing production restrictions at Tuesday’s meeting, while producers balance expectations of a recovery in demand and a possible increase in Iranian supplies.

The OPEC+ group decided in April to increase production by 2.1 million barrels per day from May to July, in anticipation of increased global demand despite the rise in coronavirus cases in India, the third-largest oil consumer in the world.